Dogecoin Breakout Points to $0.128, but Buyers Must Hold

Dogecoin rose above 10 cents on September 22 after gaining more than 15%, putting a chart-based target near $0.128 in view. That would be roughly 30% above its price near $0.098 when the forecast was published, not a guaranteed outcome.

The move followed a breakout from a cup-and-handle pattern, a chart formation that some traders use to estimate potential gains. FX Empire’s analysis placed DOGE above the pattern’s upper trendline and its 200-day moving average, near $0.093.

The rally also came during a broad crypto rebound. CoinDesk reported that Bitcoin rose about 5% over 24 hours to above $85,600, while more than $1 billion in crypto positions were liquidated. About $844 million of those positions were short bets, according to CoinGlass data cited by CoinDesk.

FX Empire put Dogecoin short liquidations at about $12.66 million. When a short position is forcibly closed, the trader or exchange must buy back the asset. That buying can add momentum to a rising market, but it does not by itself show lasting demand.

The projected target comes from measuring the depth of the chart pattern and adding it to the breakout level. DOGE had rebounded more than 50% over the prior month, according to FX Empire, making the proposed move an extension of an already sharp recovery.

The key near-term test is whether buyers defend the breakout area. FX Empire identified roughly $0.09 to $0.093 as support; a fall below that band would weaken the bullish setup. It also cited the 20-day moving average near $0.087 as another potential support level.

The squeeze may be losing force: CoinDesk said crypto liquidations had dropped to less than $11 million in the hour before its report, from more than $300 million an hour at the peak. For DOGE to keep climbing toward $0.128, fresh buying would need to take over from forced short covering.